What is the estimated range for Insurance costs for a Circle K franchise, and when is it due?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee | $25,000 | Lump Sum | Upon signing | TMC |
| (Note 1) | Agreement | |||
| Regional In-Store | $1,000 ($500 | Lump Sum | Upon signing | TMC |
| Training Fee | per attendee) | Agreement | ||
| Travel and Living | $3,500-$15,500 | As Incurred | As Incurred | Airlines, Hotels, |
| Expenses While Training | Restaurants, Rental Cars or | |||
| (Note 2) | TMC | |||
| Real Estate (Note 3) | (Note 3) | (Note 3) | (Note 3) | (Note 3) |
| Construction, Remodeling, and Leasehold Improvements (Note 4) | $850,000- $1,500,000 | As Billed | As Incurred | Contractors, Suppliers or Other Third Parties |
| Other Site Development | $40,000 - | As Incurred | As Incurred | Architects, Engineers and |
| Costs (Note 4) | $100,000 | Other Third Parties | ||
| Furniture, Fixtures & | $400,000- | As Billed | As Incurred | Suppliers |
| Equipment | $800,000 | |||
| EPOS and Computer | $40,000 - | As Incurred | As Incurred | Suppliers |
| Systems | $50,000 | |||
| Network Fee (3 months) | $0 - $150 | EFT Draft | Monthly | TMC |
| (Note 5) | ||||
| Signs | $20,000- | As Billed | As Incurred | Suppliers |
| (Note 6) | $55,000 | |||
| Security Deposits and | $2,000-$15,000 | As Incurred | Prior to Opening | Lessor or Gov’t Agencies |
| Licenses and Permits | ||||
| (excluding impact fees) | ||||
| (Note 7) | ||||
| Utility Deposits | $1,500-$10,000 | Lump Sum | Prior to Opening | Utility Companies and |
| (Note 8) | Other Service Providers | |||
| Vendor Deposits | $0-$16,000 | Lump Sum | As required by Vendors | Vendors |
| Merchandise Inventory | $60,000- | As Billed | As Incurred | Third Party Vendors |
| (Note 9) | $100,000 | |||
| Professional Fees | $1,000-$5,000 | As Incurred | As Incurred | Attorneys, Accountants, |
| (Note 10) | and Other Professionals | |||
| Insurance (Note 11) | $4,500-$12,000 | As Billed |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–45)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the estimated cost for insurance ranges from $4,500 to $12,000. This cost is due as billed.
Note 11 in Item 7 indicates that franchisees must obtain and maintain insurance coverage for their store as required in the Convenience Store Franchise Agreement. The actual cost can vary significantly based on factors such as the insurance company selected, the store's location, the value of equipment and improvements, and the number of employees.
Circle K requires that the company and its affiliates be named as "Additional Insureds" on all insurance policies, with the exception of Worker's Compensation and Property Insurance, where applicable. This requirement ensures that Circle K is protected from potential liabilities related to the franchisee's operations. Franchisees should factor in these insurance costs when planning their initial investment and ongoing operational expenses.